Crude oil prices dip below $65/barrel, lowest since August 2021
What's the story
Crude oil prices have dipped below the $65 mark, trading at $64.72 per barrel, its lowest since August 2021.
The sharp fall is mainly due to US President Donald Trump's recent imposition of new tariffs and an increase in output announced by the OPEC+ producer group.
The price fall was further worsened on Friday when China announced a 34% tariff on all US goods starting April 10.
Market impact
Brent and WTI futures experience significant losses
Brent futures suffered a major loss, plummeting by $5.52 or 7.87%, to close at $64.62 per barrel by 5:10pm IST.
US West Texas Intermediate crude futures also fell by $5.86 or 8.10%, to $61.09 per barrel.
Both benchmarks are now headed for their biggest weekly losses in percentage terms in the last six months, thanks to President Trump's tariffs and OPEC+ output increase announcement.
Safe havens
Investors seek refuge amid global market turmoil
The announcement of new tariffs by Trump affected other markets more severely, with investors flocking toward safe havens like government bonds and gold.
Fears of a potential recession prompted the move as the news sent shockwaves through global financial markets.
The dollar index also took a hit, dropping to 101.96—its lowest since September 2024.
Supply boost
OPEC+ plans output increase, impacting oil prices
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively called OPEC+, announced plans to boost their output.
The group now plans to return 411,000 barrels per day (bpd) to the market in May, up from an earlier plan of 135,000 bpd.
The surprise decision has sent oil prices tumbling and is viewed as a major policy shift after years of supply constraints that had previously propped up crude prices.